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TRULIANT PROTECTS ITS MEMBERS BY HAVING OPT-IN OVERDRAFT PROTECTION
Winston-Salem, N.C.(August 17, 2009) –There is no doubt about it; overdraft fees can add insult to injury! Truliant Federal Credit Union understands just that and goes the extra mile to help its member-owners avoid costly fees while protecting them from the embarrassment of bouncing a check. Truliant begins by educating its members to take advantage of a line of credit (opt-in), which is essentially a short-term loan at a low interest rate. Though the credit union also offers a standard overdraft product, members have the opportunity to understand the product and opt-in, which is contrary to financial institutions with an opt-out feature.
“The fact that our overdraft products are opt-in is one of our many points of differentiation,” said Marc Schaefer, President/CEO of Truliant Federal Credit Union. “Members have requested that we have an overdraft product and it is our goal to meet their needs, but to do so in the most responsible way possible. We are committed to educating our members on the best possible financial choices and acting in their best interest.”
If a member chooses not to take advantage of a line of credit and signs up for the courtesy pay overdraft, they do so knowing the conditions and the fees that come along with exercising this option when overdrawing their account.
“We urge our members to have a line of credit because the courtesy pay products come with huge interest rates when viewed as a loan. Overdraft fees have proven to be very lucrative for financial institutions, and we most certainly receive income from the fees as well, but when our members use overdraft protection, they understand the product options and features and have opted in to the service. It’s truly a “let the buyer be aware” situation.”
In a recent USA Today article titled Courtesy overdraft fees hit credit unions, too, Senator Chris Dodd agrees with the type of structure Truliant has in place.
"All banks and credit unions should be required to get customers' OK before they sign them up for overdraft services," Dodd says.
About Truliant Federal Credit Union
Truliant Federal Credit Union is a not-for-profit, financial institution that provides affordable financial services to its member-owners. Truliant was chartered in 1952 and now serves more than 181,000 members and has 25 Member Financial Centers in NC, SC, OH and VA. For more information on Truliant Federal Credit Union, visit TruliantFCU.org.
Contact Information
Ryan Shell
Marketing Communications Supervisor
Truliant Federal Credit Union
336-408-2176
marketingrequests@truliantfcu.org
